At Ashtons Legal, our expert property solicitors provide comprehensive legal support for landlords dealing with shared ownership leases. Whether you are granting a new lease, negotiating a variation to an existing lease, or facing disputes, we offer clear, pragmatic advice to protect your interests and ensure your property endeavours have the best chance at success.
We appreciate the complex legal considerations that shared ownership leases present, particularly with the changes in recent years and the ongoing increased obligations on Landlords. Our team will work closely with you to understand your personal goals, ensuring your agreements are structured effectively and align with your long-term strategy.
We provide tailored advice to help landlords navigate the complexities of shared ownership arrangements, mitigating risks and ensuring compliance with evolving regulations.
At Ashtons Legal, we can provide support with various matters, including:
- Drafting and reviewing shared ownership lease agreements
- Managing staircasing transactions
- Resolving shared ownership lease disputes
- Recovering rent and service charge arrears
Contact our Shared Ownership Leases Specialists Today
For bespoke advice on shared ownership leases, please contact our expert solicitors in Bury St Edmunds, Cambridge, Ipswich, Norwich and Leeds today. If you prefer, you can fill in our short enquiry form, and a member of our team will be in touch.
Our Shared Ownership Leases Solicitors’ Services for Landlords
Drafting and reviewing shared ownership lease agreements
A well-drafted shared ownership lease is crucial in setting clear expectations and protecting the rights of both leaseholders and landlords. Any lease needs to be compliant with the terms of the relevant Affordable Homes Programme as well as being site specific and tailored to the landlord.
At Ashtons, our solicitors ensure leases are structured correctly, including the sector’s mandatory clauses. We provide expert up to date guidance to prevent potential disputes and ensure compliance with housing regulations.
Managing staircasing transactions
The act of increasing a leaseholder’s share in a shared ownership property, known as staircasing, requires careful legal oversight.
Where staircasing is not dealt with internally we assist with the process, ensuring transactions are completed efficiently, valuations are properly handled, and lease terms are updated accordingly. Our friendly solicitors provide clear advice to ensure a seamless transition while protecting both parties’ interests.
Resolving shared ownership lease disputes
At Ashtons Legal, we appreciate that disagreements over shared ownership leases can be complex. Issues such as service charges, maintenance responsibilities, or lease terms can easily cause acrimony between involved parties if not swiftly mitigated.
Our friendly solicitors offer practical and strategic solutions to resolve disputes swiftly, whether through negotiation, mediation, or formal legal action. We focus on achieving fair outcomes while minimising stress and financial risk, preserving your valuable relationships and saving your time and money.
Recovering rent and service charge arrears
Unpaid rent and service charges can often strain landlords and housing providers financially. Our specialist solicitors provide expert legal support in recovering arrears, from initial notices and negotiations to legal enforcement where necessary. We take a proactive approach to ensure efficient recovery while maintaining compliance with shared ownership lease obligations.
Frequently Asked Questions About Shared Ownership Leases
What is a shared ownership lease?
A shared ownership lease is a legal agreement that allows an individual to purchase a percentage of a property while renting the remaining share from a housing provider or landlord.
This scheme is designed to make homeownership more accessible, particularly for first-time buyers. The leaseholder pays a mortgage on the owned share and rent on the remainder, typically with an option to increase their ownership over time (a process known as staircasing).
The lease sets out the rights and responsibilities of both the tenant and the landlord, ensuring clarity on property use, maintenance obligations, and rent payments.
How do shared ownership leases work?
Under a shared ownership lease, the buyer purchases an initial share in the property (often between 25% and 75% (although the minimum share is 10%) and pays rent on the remaining share, which the landlord or housing association owns.
The leaseholder can buy more shares over time, reducing the rental portion and in some cases acquiring the whole property (final staircasing). Shared Ownership leases in certain areas may be restricted so the maximum share which can be acquired is 80%.
The required term for a shared ownership lease is now 999 years and the lease set out obligations such as maintenance costs and service charges. If the leaseholder wishes to sell, depending on the lease terms they may have to first offer the share to the landlord before selling on the open market, ensuring affordability within the scheme.
What are the key terms of a shared ownership lease?
A shared ownership lease includes important provisions governing the relationship between the leaseholder and landlord. Key terms often include:
- Initial ownership share: The percentage of the property owned by the leaseholder.
- Rent obligations: The amount payable on the landlord’s retained share, with provisions for annual increases.
- Staircasing rights: The ability for the leaseholder to purchase additional shares over time.
- Service charges: Costs associated with maintenance, insurance, and communal areas (where the landlord is not otherwise responsible for the cost).
- Resale restrictions: A process requiring the leaseholder to offer the property back to the landlord before selling on the open market.
- Repair and maintenance: Defining responsibilities for both parties.
It is essential to seek clarity on the terms of your shared ownership lease before signing anything, as otherwise you may risk severe consequences. Our shared ownership solicitors can review and negotiate for the most favourable terms in your lease, ensuring you are in the best position when signing legal documents.
What are the advantages of shared ownership for landlords?
Shared ownership leases provide landlords with a steady rental income while maintaining a stake in the property. The structure ensures long-term tenant commitment, as leaseholders often aim to increase their share over time. It is a product which is well supported in the market as lenders have had input into the wording of the model leases.
Additionally, this model provides financial stability while supporting accessible homeownership.
What happens if the tenant wants to sell their share of the property?
If a shared ownership leaseholder wishes to sell, they typically must follow a formal resale process. Most leases require the tenant to offer their share to the housing provider or landlord first, who may have a set period (e.g., 4 weeks under the new model leases) to find a suitable buyer.
If the landlord does not exercise this right, the leaseholder can then sell on the open market, but only to buyers who meet the shared ownership scheme criteria.
How can landlords protect their interests in shared ownership leases?
Working closely with tenants and maintaining clear communication ensures compliance with lease terms while balancing the benefits of shared ownership for both parties. At Ashtons Legal, our solicitors can help you communicate with your tenants, ensuring they feel listened to whilst upholding your own interests.
Why Choose our Shared Ownership Leases Solicitors?
At Ashtons Legal, we have extensive experience advising landlords on shared ownership leases. We ensure that your lease agreements are structured to protect your interests while complying with all relevant legal and regulatory requirements. Our team provides clear, practical guidance to help you manage your shared ownership properties effectively.
Navigating the complexities of shared ownership leases can be challenging, particularly as regulations evolve. You can rely on our solicitors to ensure your agreements remain compliant and that any legal issues are addressed efficiently. Likewise, if you are concerned about extending the lease on a shared ownership, we can ensure you reach the most favourable terms.
If you would like to learn more about our expertise in shared ownership leases for landlords, please get in touch with our residential development team.
Contact our Shared Ownership Leases Specialists Today
For bespoke advice on shared ownership leases, please contact our expert solicitors in Bury St Edmunds, Cambridge, Ipswich, Norwich and Leeds today. If you prefer, you can fill in our short enquiry form and a member of our team will be in touch.